Amazon FBA Profit Calculator
Calculate your net profit, margins, and ROI for Amazon FBA sales.
Gross Revenue:
Total Amazon Fees:
Net Profit:
Profit Margin:
Return on Investment (ROI):
Understanding Amazon FBA Profit Margins
Selling on Amazon via Fulfillment by Amazon (FBA) offers massive scale, but the fee structure can be complex. To run a sustainable business, you must look beyond your "Gross Revenue" and focus on your "Net Profit."
Key Fees Explained
- Referral Fee: This is Amazon's commission for selling on their platform. For most categories, this is 15% of the total sale price.
- Fulfillment Fee: This covers picking, packing, and shipping your product to the customer. It is based on the weight and dimensions of your product.
- Storage Fees: Monthly fees based on the volume (cubic feet) your inventory occupies in Amazon's warehouses. This typically increases during Q4 (October–December).
Example Calculation
Suppose you sell a yoga mat for $35.00. Your costs are as follows:
- Unit Cost from Supplier: $8.00
- Shipping to Amazon Warehouse: $1.50
- Referral Fee (15%): $5.25
- FBA Fulfillment Fee: $6.50
- Monthly Storage & Marketing: $2.00
In this scenario, your total expenses are $23.25. Your Net Profit is $11.75, resulting in a 33.5% Profit Margin and a 146% ROI on your unit cost.
How to Improve Your FBA Margins
To increase your bottom line, consider optimizing your packaging to drop into a lower FBA size tier, negotiating lower unit costs with suppliers for bulk orders, or improving your PPC conversion rate to lower your marketing spend per unit.